What do home lenders fear?
So that you to understand mortgage loans better, you have to understand the “fears” of a home loan lender. Once you understand their point of view better, you can see whether they will accept your mortgage application - taux hypothecaire.
A lender has two big fears:
Losing Money
The lender does not want to lose any of the capital that he has lent, nor the interest he is supposed to receive - taux hypothecaire. It happens (too often from the lender’s viewpoint) that people do stop making their mortgage payments.
When this happens, the lender has even greater losses because he has to cover the fees of a lawyer to initiate the proper steps for the foreclosure of the home.
Then the mortgage lender has to hope that the current market value of the property is high enough to pay off the loan (taux hypothecaire), the late interest payments, and the legal costs.
Losing Time
For a mortgage lender, the efforts to repossess a property is a loss of his time. He really prefers to lend the money and collect the payments. To hire lawyers, follow all the necessary legal steps and administer the house before it is sold and to sell the property are not activities that he wants to be involved in.
He is just losing his time!
There are instances where the lender does not lose money on the home because it is a loan that is guaranteed (taux hypothecaire), for example by CMHC. Even so, the lender will want to take every possible step to assure that the loan is a good loan and the borrower is a good risk rather than have to foreclose.
Many times, people ask “Why won’t the bank give me a mortgage-they have my house as security?”
Well, they don’t want your home, only your mortgage payments - taux hypothecaire.
Gregory is an Accredited Mortgage Professional (AMP) with Mortgage Intelligence. If you need more information about
Mortgage rates - taux hypothecaire, visit:
taux Hypothecaires - Mortgage Intelligence
